CBN Survey Shows Nigerian Families Strained as Banks Set to Raise Interest Rates

Nigerian households are feeling the squeeze as rising costs and tightening credit conditions continue to limit their spending power, according to the latest Household Expectations Survey released by the Central Bank of Nigeria (CBN). The February 2026 report paints a picture of cautious consumers who are holding back on major financial commitments amid growing economic uncertainty.

The survey shows that many families are increasingly unwilling to spend on big-ticket items such as housing, vehicles, appliances, and investments. Across all measured periods, respondents expressed negative sentiment, reflecting a population grappling with reduced income flexibility and high borrowing costs. For many Nigerians, everyday financial decisions are now shaped by the need to stretch limited resources further.

At the same time, borrowing conditions appear to be getting tougher. About 42.7 percent of respondents reported that bank lending rates have risen over the past three months, while 39.2 percent expect rates to climb even higher in the near future. This trend highlights the continued impact of the CBN’s monetary tightening policies aimed at controlling inflation, though it has made access to credit more difficult for households.

Despite these pressures, most Nigerians are hoping for relief. Nearly 63 percent of respondents said they would prefer lower interest rates, with 48.3 percent even willing to accept the risk of higher inflation if it means cheaper borrowing. This reflects the growing tension between the need to stabilize prices and the urgency of easing financial pressure on consumers struggling with the high cost of living.

While businesses surveyed by the CBN expressed cautious optimism about future economic conditions, households remain less hopeful. With rising financing costs and uncertain income prospects, many families are likely to continue cutting back on spending. This divergence highlights the uneven pace of Nigeria’s economic recovery, as policymakers face the difficult task of balancing inflation control with the need to stimulate growth.
source: The sun